Currency Conversion

[boblee0918]

Dear Mark,

I set up foreign currency HKD, and USD is my default as shown is the first attachment.

Exchange Rate Portflio

portflio.JPG (31.17 KiB) Viewed 2351 times

And the Gain/Loss are correct in native currencies when View/Exchange Rate Adjusted is turned off.

original currency

original_currency.JPG (47.44 KiB) Viewed 2351 times

But when View/Exchange Rate Adjusted is turned on, some numbers are correct and some wrong. Look at the numbers in the third attachment, the first row is correct, but the 2nd and 3rd are wrong. The exchange rate fluctuated between 7.75 - 7.79 during the stated period. The 4th is priced in default USD, so it's always right.

default currency

default_currency.JPG (47.8 KiB) Viewed 2351 times

What did I miss-do? I remember it did do well before.

Regards

Bob

[Mark]

Hi Bob,

How are you determining rows 2 and 3 are wrong? If we look at row 3 (998 CHINA CITIC), we have:

Sell Value in USD 348,960, which could range from 45027 - 44796 for rates of 7.75 to 7.79
Cost Basis in USD 354,848, which could range from 45787 - 44917 for rates of 7.75 to 7.79

which means the gain could be anywhere from +110 to -991, and the report is showing -674, which is in this range.

Maybe you were looking at just the Gain, and dividing from the USD Gain? Really, that can vary further than the 7.75-7.79 ratio because the sell value and cost basis each have their own exchange rate and the gain is the difference of these two.

I noticed the sell value in HKD was 44,767, which is 7.795 scaled from the USD number. This is slightly outside your stated range of 7.75-7.79. Maybe that range was just a rough estimate on your part, but if not, double check the prices in your exchange rate investment. Look at them in the Data Register under the data type of "Prices". Look at the price on 1/26/16 for this case. Another possibility is if you specified a transaction specific exchange rate. To see these you would edit the buy/sell transactions, and see if this option is checked, and what exchange rate you specified. This overrides any global exchange rates.

[boblee0918]

Thank you for the clearing, which is very helpful. BTW, could my version 12.x be upgraded to 14.x?

Regards
Bob

[boblee0918]

Again, what is the best way in your experience FM keeps track of different currencies in CASH investment? One cash investment for one currency?

Regards
Bob

[Mark]

Hi Bob,

You can upgrade from 12.x to 14.x. 14.x is also called Fund Manager 2016. Just install the new 2016 version right over your current version. Do not uninstall your current version. An upgrade fee is required. For more details on upgrading, please read:

https://www.fundmanagersoftware.com/upgrade.html

If you have cash in multiple currencies, yes you should have 1 cash investment per currency.